Alberta's Power Play: Potential Changes Should Bring New Renewable Power Project Opportunities

The Alberta Government is expected to announce policy changes in the next two weeks that should encourage new renewable power projects in the Province.

Alberta Power Market

Alberta's electricity market is unique in Canada in many ways. Unlike most other Provinces, the Province of Alberta has never owned or operated a power utility. It has also never created a Crown corporation or agency to procure and sell power into its power market. To date, the Province has no legislated renewable power program. Instead, Alberta relies on the Alberta Electric System Operator ("AESO") to operate the Province's power pool in an open and competitive fashion to dispatch energy at a single hourly price determined using a minute-by-minute merit order system. Pool prices are set in real time at the intersection of supply and demand, without government price intervention except for a mandated $999.99 MW/h offer cap. Accordingly, it is generally said that Alberta operates Canada's only